& cplSiteName &

AT&T Eyes Expanding U-verse

Craig Matsumoto
News Analysis
Craig Matsumoto
10/18/2012
50%
50%

AT&T Inc. (NYSE: T) is considering expanding its U-verse buildout, offering high-speed broadband to some -- probably not all -- of the 18 million access lines that don't yet have it, according to one analyst's report Thursday morning.

AT&T is discussing this internally and should make a decision within weeks, writes George Notter of Jefferies & Company Inc. The carrier has an analyst day planned for Nov. 7, so it's possible any big news could come out then.

The U-verse expansion would probably take 12 to 18 months, equipment-vendor sources told Notter.

Why this matters
Obviously, the first 30 million-line deployment concentrated on areas easy to wire up and/or filled with likely customers, so any expansion would start bringing broadband to more remote areas. Notter points out that the remaining 18 million access lines are "scattered over 80 percent of AT&T's geographic footprint."

Alcatel-Lucent (NYSE: ALU) provided the fiber-to-the-node gear for the original U-verse deployment and would be the likely choice for the expansion, Notter writes. Part of the reason is because the expansion isn't big enough to justify the OSS/BSS work required to bring in companies such as Adtran Inc. (Nasdaq: ADTN) or Calix Networks Inc. (NYSE: CALX)

About 3 million to 5 million households would get FTTN in a U-verse expansion, Notter estimates. Most of the rest would get access via LTE, and that part of the deal could be split between AlcaLu and Ericsson AB (Nasdaq: ERIC), he writes.

The FTTN business wouldn't be huge for AlcaLu -- about $110 million to $190 million in DSLAM equipment, Notter writes.

For more



— Craig Matsumoto, Managing Editor, Light Reading

(11)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
joanengebretson
50%
50%
joanengebretson,
User Rank: Light Beer
12/5/2012 | 5:18:56 PM
re: AT&T Eyes Expanding U-verse


Any AT&T lines without broadband or with low-speed broadband are in danger of becoming worthless as more & more people cancel landline voice. So it doesn't seem like AT&T has many options other than to deploy some sort of LTE-based fixed offering like Verizon's HomeFusion or expand the availability DSL -- although whether it's full blown high-speed DSL in the form of U-verse or something slower remains to be seen.


Any areas that don't have broadband of at least 4 Mbps available are targeted as part of the Connect America Fund, so AT&T might be able to pick up some money to help fund the buildout. But if the company doesn't build out broadband to those people, a competitor could bid to take a CAF subsidy & do the broadband build-out instead.That won't happen right away, but it's something AT&T has to be thinking about.

Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
12/5/2012 | 5:18:56 PM
re: AT&T Eyes Expanding U-verse


A new Fitch report is claiming AT&T is getting ready to invest in its rural business, instead of walking away from it or trying to sell its rural territories, as Verizon did, and I wonder if this is part of that trend.  Apparently Randall Stephenson told analysts AT&T was considering rural investments at a recent analyst meeting.


 I don't know how well U-verse would work in very rural areas, but given the progress made with vectoring and more, it's conceivable AT&T could deliver more bandwidth over the copper lines to at least bring high-speed Internet to rural areas that don't have it now, and potentially its video product.


The Fitch report press release is here: http://www.businesswire.com/news/home/20121015006592/en/Fitch-Publishes-Report-ATT-Rural-Access-Line


It will be interesting to see how this plays out and whether AT&T might even accept Connect America funds in the second round - they turned them down initially -- to help pay for the buildout.

paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 5:18:55 PM
re: AT&T Eyes Expanding U-verse


Here is an example of one of these rural AT&T properties....


 


http://en.wikipedia.org/wiki/Laytonville,_California


 


Nobody is building there.  People seem to not get how rural this real rural stuff is.  I use a bit of a story to give people an idea.  Folks here know I have worked at AFC.  Which means I worked in Petaluma, but in fact I live in Santa Rosa or as I call it the end of civilization in Northern California.


- Northern California is funny because if you look at a map, San Francisco is actually Central California.


- Santa Rosa has about 150,000 people


- There are about the same number of people between Santa Rosa and Oregon along the 101 corridor. 


- This is an 8 hour drive and you pass through a town of about 40,000 on the way.


 


The ONLY way that people are overbuilding or doing major work in these kinds of areas is the mandatory imposition of a universal service obligation.


seven


 


 

Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
12/5/2012 | 5:18:54 PM
re: AT&T Eyes Expanding U-verse


So  what could AT&T do in an area like Laytonville? Copper or LTE?

paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 5:18:53 PM
re: AT&T Eyes Expanding U-verse


 


Could, Would or Should?


What they could do is anything.


What they should do is nothing. 


What they would (will) do is potentially expand on their DSL.  


Biggest issue in the smaller COs has been the need (believe it or not) to meet Pronto requirements.  If that can be eliminated, they could backhaul the dsl in these smallish areas.


Sattelite is a much better option for these folks most of the time and already exists.  So, there is not a big need for video that drives much of the U-verse bandwidth.  Just more and better DSL is probably the correct middle of the road.


What you might see in conjunction with that is an expansion of the u-verse footprint beyond where it is today into adjacent small COs.  To go 150 miles to the nearest u-verse territory seems unlikely.


seven


 

paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 5:18:52 PM
re: AT&T Eyes Expanding U-verse


Laytonville does not have u-verse and LTE is NOT the same as u-verse which is a voice video and data offering.  And we will see if and when 4G comes there.  And by the way, 3G only exists in the little hamlet not in the outlying parts of the town.  You can see that on the coverage maps.


seven


 

opticalwatcher
50%
50%
opticalwatcher,
User Rank: Light Beer
12/5/2012 | 5:18:52 PM
re: AT&T Eyes Expanding U-verse


Laytonville, California is on US101, which is pretty much covered by ATT, both voice and data (and, I am sure, by Verizon and Sprint).


So Laytonville is already covered. When the upgrade to LTE is complete, then even fast data plans will be available, at no extra cost to any of the ISPs (though probably at extra cost to these customers).


Now pick a town more off the beaten path and I don't know what the solution is. When WiMax first came out they talked about using it it rural areas. Have few cell stations and broadcast with a stronger signal. Fewer cells are needed in low-populated areas. I don't know how realistic this is, though I've heard of low-population communities is Oregon where they did something like this using a WiFi mesh.


In any case, wireless is a heck of a lot less expensive way to reach out-of-the-way houses in rural areas.

fgoldstein
50%
50%
fgoldstein,
User Rank: Light Sabre
12/5/2012 | 5:18:51 PM
re: AT&T Eyes Expanding U-verse


Tera, mobile coverage is no substitute for wireline.


Mobile, even 4G, provides fast burst speeds, but the cost/bit is very high, so data caps or costly measured service are the rule.  Your typical home broadband subscriber runs 30-60 GB/month.  Try that on mobile!  Even one good-sized Microsoft Update (the second Tuesday specials) can eat up a large share of a mobile data plan -- of course mobile devices don't run XP or Win7.


Verizon's Cantenna plan does provide relatively cheaper bits than its mobile plans, but they're still costlier than wired bits.  So they're sutiable for home broadband IFF you don't use it to watch or download videos, which are the biggest waste of bits, I mean wonderful demand generators for broadband capacity.  Certainly better than satellite (too much delay) or dial-up, but plain old DSL is still better.


UVerse is cable TV. It is not about Intenret access, but using the same wire to provide switched digital video.  So there has to be fiber (with all the channels) going to the VRAD, which can tolerate only up to around 4000 feet of wire, if the wire is in decent shape.  In rural areas that doesn't add up.  Satellite TV is still the most effective option for home entertainment.  Then terrestrial radio (why did that Marconi-era term "wireless" get revived?) makes the most sense for lower-bandwidth applications where it's too expensive to string fiber.  CAF may finally put an end to the wasteful "fiber to the ranch" for $20k+ that USF and RUS have been paying rate-of-return ILECs to build.

fgoldstein
50%
50%
fgoldstein,
User Rank: Light Sabre
12/5/2012 | 5:18:51 PM
re: AT&T Eyes Expanding U-verse


Laytonville is part of a cluster of Verizon-California exchanges; AT&T is not the ILEC there.  So of course there's no UVerse.  To be sure, it's a very rural area and Verizon proably doesn't even have DSL there either.  They certanly don't in Covelo, the next CO over (though a long slog over the mountains).  HOWEVER, a CLEC that I work with has DSL in both COs, Laytonville and Covelo, as well as WISP coverage of much of the area.


THis is a tough area for WISPs, since it's mountainous; if you really want a hurtin' spot, try Dos Rios, a little valley spot wedged bewteen undulating mountain ranges.  And don't try to string fiber there either.  Covelo's CO has no fiber, becuase CEQA rules make it so hard to string anything along the roads.  Rural Broadband Now! has DSL there because it beams licensed microwave into Covelo from a snowy mountain about 30 miles away.  That relays back to Willits, on the ATT side of the divide.


So when ATT talks about expanding UVerse, this is not the part of the world that they're talking about.  Mendocino and Humbolt are really tough areas to serve, so it's best left to intrepid entrepreneurs who aren't wedded to one technology.

paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 5:18:49 PM
re: AT&T Eyes Expanding U-verse


rma,


Companies are in business to make money for their shareholders.  In fact, people are supposed to go to jail if they don't maximize their profits.  There is certainly debate around short term and long term profits, but I think you get the point.  The data caps have not lowered their wireless revenue so seem like a way to "monetize" their networks.


On the other side, Clearwire is definitely NOT available everywhere.  Why do you think this is?  Is it because Clearwire needs to up its profits being in markets where it believes it can make money?


seven


 

Page 1 / 2   >   >>
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, August 3, 1:00PM EDT
The Central Office Re-Architected as a Data Center
Guru Parulkar, Executive Director, Open Networking Research Center, Open Networking Lab
UPCOMING COURSE SCHEDULE
Wednesday, August 10, 1:00PM EDT
Telcos & Open Source 101
Phil Robb, Senior Technical Director, OpenDaylight
Friday, August 12, 1:00PM EDT
The Role of Open Source in NFV
Jim Fagan, Director, Cloud Practice, Telstra
Wednesday, August 17, 1:00PM EDT
Using Open Source for Data Centers and Cloud Services
Roz Roseboro, Senior Analyst, Heavy Reading
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (0) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Telecom Innovators Video Showcase
Versa Networks' Kumar Mehta on SD-WAN Managed Services

7|19|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Versa's Kumar Mehta for an interview focused on why service providers are building SD-WAN managed services, and how Versa's telco customers are innovating.
LRTV Custom TV
Juniper Networks & The Evolution of NFV

7|19|16   |   06:01   |   (0) comments


Senior Juniper Networks executives talk to Light Reading Founder & CEO Steve Saunders about NFV developments and the recent independent evaluation by test lab EANTC of Juniper's Cloud CPE solution.
LRTV Interviews
CenturyLink Goes Beyond Managed WiFi

7|19|16   |     |   (0) comments


CenturyLink's managed WiFi allows enterprises, such as retailers and resorts, to track guest WiFi usage in order to help them better communicate with customers.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Verizon Sports Big Plans for Yahoo
Alan Breznick, Cable/Video Practice Leader, Light Reading, 7/26/2016
Light Reading Beyond
Steve Saunders, CEO and founder, Light Reading, 7/28/2016
Are IP/Optical Integration Initiatives Moving to Silos?
Faisal Khan, Network Operator Technology Planning Dept., 7/28/2016
Yahoo Signing Off in $4.83B Sale to Verizon
Mari Silbey, Senior Editor, Cable/Video, 7/25/2016
Ericsson Board Has Been Asleep at the Wheel – Consultant
Ray Le Maistre, Editor-in-chief, 7/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
I've enjoyed interviewing many interesting people since I rejoined Light Reading, but William A. "Bill" Owens certainly takes the biscuit, as we say where I come from.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.